Hot Growth Stocks To Watch For 2017

BMO Capital Markets analysts Kenneth Zaslow and Patrick Chen took a look at the valuations of Tyson Foods (TSN) and Pilgrim’s Pride (PPC) and decided they were afraid of heights. They explain why they cut Tyson Foods to Market Perform from Outperform…

Scott Sinklier/AgStock Images/Corbis

We are downgrading�Tyson shares to Market Perform. Our overarching view on�Tyson remains unchanged. We continue to believe that�Tyson deserves a premium-multiple to its history, as�Tyson and its management team have made one of the greatest transformations across our coverage group in terms of structural operational improvements, balance sheet strength, and capital allocation. However, our case for aggressively investing in�Tyson is less persuasive at current valuations and as expectations continue to build despite a surge in feed costs particularly soybean meal. Notwithstanding upside to near-term earnings, we would not be surprised if further valuation expansion were to be limited as�Tyson likely will generate the majority of its 2017 EPS growth from non-operating items (e.g., interest expense, share repurchases). Tyson��s stock outperformed the S&P by 5,000 basis points over the last year, as Tyson is currently trading at 8-9x forward 12-month EV/EBITDA estimates relative to its five-year historical average of 5x.�

Hot Growth Stocks To Watch For 2017: Nordstrom Inc.(JWN)

Advisors' Opinion:

• [By Lisa Levin]

  Nordstrom, Inc. (NYSE: JWN) was down, falling around 7 percent to $49.15 after the company reported weaker-than-expected results for its fourth quarter on Thursday.

• [By Jim Robertson]

  ��I'm not going to dig deep into their financials, but trust me when I say we are not fans of Lululemon Athletica Inc. (LULU), The Kroger Co. (KR) and Nordstrom Inc. (JWN) right now���� As you can see with JWN, although the stock has done well of late, it's clearly in a long-term downtrend, one I don't think will end until the stock finds its way down below $30 per share. That's a far cry from where it is now, but depending on what the rest of the markets do, it's definitely achievable. However, we're going to keep a bit of a shorter leash on this particular idea considering its recent strength.��

• [By Johanna Bennett] Getty Images

  Shares of luxury department store chain Nordstrom (JWN) are getting crushed after hours, falling more than 16% after the company released disappointing first quarter financial results and cut sales and profit forecasts for the full year.

  “Our first quarter results were impacted by lower than expected sales. In response we have made further adjustments to our inventory and expense plans,” said Blake Nordstrom, Nordstrom��s co-president, in a prepared statement.

  Retail sector earnings have been a focal point this week, with a several large chains posting gloomy updates. The biggest bust came when Macy��s (M) disappointed yesterday and slashed its full-year outlook, sending the stock falling 15% and yanking down the entire retail sector.

  Earlier today, Kohl��s (KSS) dropped more than 9% after it posted an unexpected drop in sales.

  The rout in retail stocks has fueled worries about consumer spending and even the broader economy, which were outlined in detail today by my colleague Randy Forsyth in his column, ��Up and Down Wall Street.��

  Profit per share fell more than expected, dropping to 26 cents from 66 cents a share last year, missing the consensus of 47 cents. Revenue remained flat to last year at $3.2 billion compared to the $3.3 billion forecast by analysts.

  Same-store sales dropped 1.7% during the quarter, though the same metric rose 4.6% for its Rack line of off-price stores.

  Nordstrom now says same store-sales could fall this year. The retailer sees full-year 2016 comparable sales running a range from a 1% decline to a 1% rise, compared to the previous predictions for sales to remain flat or rise.

  Nordstrom also cut its full-year EPS expectations to $2.50 to $2.70, from the previous forecast of $3.10 to $3.35.

  At $39.93, Nordstrom fell 16.1% during after hours trading.

• [By Kristen Scholer]

  Nordstrom Inc.(JWN) shares are on sale��again.

  Shares of the department store are down as much as 12% to $46.65�Friday after Nordstrom reported holiday-quarter earnings and sales that missed expectations and gave a downbeat outlook for the full year. The stock is set for its worst intraday drop since it last reported earnings in November, when shares fell as much as 21% after the retailer posted disappointing results and cut its profit and sales forecasts.

Hot Growth Stocks To Watch For 2017: Intuitive Surgical Inc.(ISRG)

Advisors' Opinion:

• [By Benzinga News Desk]

  Microsoft (NASDAQ: MSFT) Reports Q4 EPS $0.69 vs. Est. $0.58, Rev. $22.64B vs. Est. $22.14B
  Intuitive Surgical (NASDAQ: ISRG) Reports Q2 GAAP EPS $4.71, Adj. EPS $5.62 vs $4.97 Est., Sales $670.1M vs $540.7M Est.
  Halliburton (NYSE: HAL) Q2 EPS ($0.14) vs ($0.19) est, Revenue $3.84B vs $3.75B est
  Morgan Stanley (NYSE: MS) Q2 EPS $0.75 vs $0.59 est, Revenue $8.9B vs $8.3B est

• [By Joseph Hogue]

  Enter Intuitive Surgical (Nasdaq: ISRG) and Da Vinci, a robotic arm that allows surgeons to operate with just a single incision less than an inch in size.

Hot Growth Stocks To Watch For 2017: Buffalo Wild Wings Inc.(BWLD)

Advisors' Opinion:

• [By CNBC]

  Tony Tribble, Invision/AP Forget about Bloomin' Onions or boneless wings, for many consumers, the choice of where to dine often comes down to a different factor: which restaurant has the best booze. "Alcoholic beverages can be a key driver of traffic, differentiation, and loyalty," said David Decker, president of Consumer Edge Insight. According to the firm, two factors that keep customers coming back are "selection" and "pricing." Consumer Edge Insight recently surveyed restaurant customers to find out which casual-dining spots generated the most loyalty with their alcoholic beverages. Taking the top spot for "selection" was Buffalo Wild Wings (BWLD), with 29 percent of those surveyed saying they were "most likely to visit it most often due to its good selection of alcoholic beverages." Applebee's (DIN) took the second spot, with 24 percent, and Outback Steakhouse (BLMN) and T.G.I. Friday's tied for third place with 22 percent each. Prices also keep customers coming back to Buffalo Wild Wings. When asked which casual-dining brand they were "most likely to visit most often due to its good prices of alcoholic beverages," Buffalo Wild Wings came out on top with 30 percent. Chili's (EAT) was No. 2 at 23 percent, and Ruby Tuesday (RT) was third with 22 percent. Buffalo Wild Wings has always made alcohol a part of its experience, even making it part of its tagline: "Wings.Beer.Sports." The chain is the No. 1 account for more than 50 different beer brands and recently launched Game Changer, a new beer in a partnership with Redhook Brewery. Priced between cheaper domestic lagers and pricier craft beers, Game Changer became the fourth-most-popular draft beer at company-owned locations within two weeks of its release. "Among casual-dining restaurants, Buffalo Wild Wings is seeing the greatest positive effect in terms of building customer loyalty with its alcohol offerings," Decker said. "There are many steps other restaurants can take to improve their alcoho

• [By Hilary Kramer]

   We welcome host of Fox Business Network’s Making Money with Charles Payne to this year’s contest. When he’s not on air, the rags-to-riches financial guru is editing his free weekly newsletter, Charles Payne’s Smart Talk, as well as his new newsletter, Charles Payne’sSmart Investing, which allows individuals insights into picks that were formerly only available to institutions.

  Payne is going with the owner, operator and franchiser of a wildly popular sports and wings bar for this year’s pick: Buffalo Wild Wings (BWLD).

  With commodities prices in the dumps, BWLD stands to benefit as Americans have more cash lining their pockets thanks to lower gas prices. That’s cash, Charles reasons, that Buffalo Wild Wings will be able to claim a chunk of. Not to mention the fact that if chicken prices remain subdued, it’ll mean a beefier bottom line.

• [By Lisa Levin]

  Shares of Buffalo Wild Wings (NASDAQ: BWLD) were down 12 percent to $127.89 as the company reported weaker-than-expected results for its first quarter on Tuesday.

• [By AnnaLisa Kraft]

  A chicken-wing upstart
  But with success comes competition.�McDonald's (NYSE: MCD  ) is debuting its own Mighty Wings nationally, chicken wings seasoned similarly to Popeye's New Orleans style with cayenne and chili pepper. The huge quantity of wings that McDonald's will need likely driving up prices from $1.44 a pound most recently will of course, affect the entire space including Yum! Brands, AFCE, and chicken focused Buffalo Wild Wings (NASDAQ: BWLD  ) ��

Hot Growth Stocks To Watch For 2017: MEDIFAST INC(MED)

Advisors' Opinion:

• [By Lisa Levin]

  In trading on Friday, non-cyclical consumer goods & services shares rose by just 0.3 percent. Meanwhile, top losers in the sector included Medifast Inc (NYSE: MED), down 5 percent, and Bridgford Foods Corporation (NASDAQ: BRID), down 6 percent.